Money Saving Expert Andrea Woroch has some money saving tips for college grads who are transitioning into the work field after a pandemic.
Here are some of her unexpected money moves for recent college grads to build a nest egg:
1. Build your emergency fund — If you’re carrying student loan debt, saving money may seem like the last of your priorities, but the reality is you should focus on building up a savings fund before paying off your debt. You need cash to cover unexpected bills or a potential job loss especially in this economy. Otherwise, you will end up back in debt by leaning on high interest credit cards. Set up an online savings account to earn more back and set up auto transfers so it’s out of site and out of mind. For instance, you can earn .57% on your savings through VIO Bank!
2. Buy term life insurance — 54% of college attendees take on debt, including student loans, to pay for their education and the average student loan debt topped $37,500 in 2020 according to the Federal Reserve Bank. For this reason, college grads should consider purchasing a term life insurance policy to cover the cost of these debts so they don’t get passed on to parents or other family to deal with. You can purchase a small life insurance policy through Ladder and the best part — you can increase your coverage as your financial needs change. Use the free insurance calculator at Ladderlife.com to figure out adequate coverage!
3. Get a new credit card — Transfer your current debt to a new card offering 0% apr on balance transfers to buy you more time to pay down your balances without incurring fees. Compare balance transfer cards to find one with the best terms at sites like CardRates.com This is also a good time to reassess your spending habits by cutting back on distractionary purchases. For everything you need to buy like work clothes and groceries, shop savvy and automate your savings — tools like Cently add coupons and cash back at check out so you never miss a discount!!
4. Get a side hustle — There are many flexible side hustles you can do in your spare time even if you score a 9-5 job in your desired industry. For instance, you can make up to $1,000 a money by pet sitting through sites like Rover.com or sign up to be a virtual tutor at night through VarsityTutors.com. You can even get paid to chat online via LiveWorld and complete tasks like social media moderation, customer service, engagement, and monitoring. Put the extra cash can help boost your emergency savings and fast-track your student loan repayments.
5. Start investing — Sign up for your employer’s 401K Match, use grad money to buy fractional shares of popular stocks through Stockpile.